Retirement village operator Ryman Healthcare has boosted full-year profits by 49 per cent through an aggressive strategy to develop more properties.
The company reported a record after-tax profit of $35.1 million for the period, up from last year's $23.5 million.
Ryman managing director Kevin Hickman said the company had 1760
units worth $250 million either planned or under construction.
Mark Lister of ABN AMRO Craigs said Ryman's result was excellent and ahead of its 15 per cent annual earnings growth target.
"It's just such a strong business model; operationally it's just a stunner and there's probably more growth to come in line with its target," Lister said yesterday.
Ryman, with a market capitalisation of $735 million, closed yesterday at $7.35 - up 10c.
David Kerr, Ryman's chairman, said the company had enough land to build an extra 1600 new retirement village units. Last year, it had enough for 1200 units. Ryman had 1203 retirement units last year but now has 1378.
Kerr said an operating cashflow of $55 million was generated and annual turnover was up 18 per cent to $143 million. Equity rose 31 per cent to $244 million and, he said, the company had experienced an exceptional year.
The company had increased its construction capacity, which enabled it to develop new villages faster, Kerr said.
Ryman identified sites, bought land and developed the villages using in-house expertise, which had provided the business with cumulative revenues.
Ryman owns 16 villages but plans to finish two new complexes in Auckland and Christchurch within three years.
The company is developing a 9.2ha former golf course off Abbots Way in Remuera, where it is building an 84-bed resthome, a 48-bed hospital, a 31-bed special care unit, 60 serviced apartments and 246 townhouses and apartments.
Hickman said units in this three-year project would go on the market after Christmas.
Ryman is also developing a resthome, hospital and apartments on its site at Aidanfield in Christchurch and plans to finish this by 2008, he said.
Further new villages are planned for New Plymouth, Palmerston North, Nelson and Dunedin and the company is also building in Napier, Wanganui, Lower Hutt, Wellington, Christchurch and Invercargill.
